La. Admin. Code tit. 61 § I-1692
A. Terms not otherwise defined in this Chapter shall have the same meaning given to them in R.S. 47:6034, unless the context clearly requires otherwise.
B. In this Chapter, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise.
Base Investment-actual investment made and expended in this state by a state-certified musical or theatrical production:
a. as production-related costs directly related to in state production; or
b. as capital costs of a state-certified musical or theatrical facility infrastructure project.
a. In the case of construction a new building, either:
i. materials to be used in the project, representing at least 5 percent of total budgeted costs, are placed on the project site; or
ii. other work representing at least 5 percent of the preliminary construction budget and visible from a simple inspection (such as landfill, soil reinforcement or pouring a foundation) is performed on the site. (Such "other work" shall not include services in preparation for construction such as surveying, engineering, cutting or removal of trees, demolition of existing structures, clearing the land surface.)
b. In the case of repairs to or renovation of an existing structure:
i. materials to be used in the project, representing at least 10 percent of the total budgeted costs of materials, are placed at the project site; or
ii. written evidence of other work representing at least 10 percent of the preliminary construction budget, is submitted for approval to the department. Such other work may include research, planning and design purposes, such as environmental studies as may be required for historic renovation projects.
Department-Louisiana Department of Economic Development, or its successor, represented by its secretary or his designee.
Director-director of the Office of Entertainment Industry Development or his designee.
Expended in the State or Expenditures in the State-shall mean:
a. an expenditure to acquire or lease immovable property located in the state;
b. an expenditure to acquire movable property from a source within the state which is subject to state sales and use tax; or
c. an expenditure as compensation for services performed within the state which is subject to state income tax.
Expenditure - actual payment of cash or cash equivalent, paid by or on behalf of a state certified production or state certified infrastructure project, exchanged for goods or services, as evidenced by an invoice, receipt or other such document. Cash or cash equivalent transactions may include but not be limited to: commercial or bank financed loans, actual physical transfer of coins and banknotes, other forms of transmission that will turn into cash very quickly, including written checks, credit cards, bank debit cards, and bank wire transfers. However, the receipt of a promissory note, the creation of an account receivable, or the sending of a customer invoice are not, by themselves, evidence of an expenditure. Owner-financed transactions will only qualify as an expenditure when actual cash or cash equivalent payments are made.
Indirect costs-costs of operation that are not directly associated with a specific production, such as clerical salaries and general administrative costs.
Infrastructure Expenditures - expenditures directly related to the state certified infrastructure project, shall include but not be limited to: land and acquisition costs, constructions costs, design fees, furniture, fixtures, equipment purchased subject to a sale agreement or capital lease. Infrastructure expenditures shall not include indirect costs such as general administrative costs, insurance, or any costs related to the transfer or allocation of tax credits. In qualifying submitted expenditures as production-related costs or capital costs related to an infrastructure facility, LED may determine whether such expenditures represent legitimate expenditures for the actual cost of related goods or services, having economic substance and a business purpose related to the certified production or facility, and not constructive dividends, self-dealing, inflated prices or similar transactions entered into for the purpose of inflating the amount of tax credits earned rather than for the benefit of the production or facility.
Limited State-Certified Musical or Theatrical Production-a musical or theatrical production or a series of productions occurring in Louisiana by a non-profit community theater that held a public performance before an audience within this state during the 2008 calendar year which has been certified, verified, and approved in accordance with R.S. 47:6034(B)(11).
Louisiana Resident-
a. a natural person who:
i. is a Louisiana domiciliary;
ii. maintains a permanent place of abode within Louisiana and spends in the aggregate more than six months of each year in Louisiana; or
b. pays taxes to Louisiana on the amount of money paid to such person for which a tax credit is sought.
c. a company:
i. in which a Louisiana resident has ownership or control;
ii. organized or authorized to do business in Louisiana;
iii. that lends the services of such Louisiana resident for a state-certified musical or theatrical production; and
iv. pays taxes to Louisiana on the amount of money paid to such person for such services.
Multi-Purpose Facility - a building or building complex that is capable of more than one use. Examples may include, but not be limited to: a building complex containing a theatre and a restaurant; one building that can be configured in a variety of ways, such as the ability to host either a live performance stage production or a live sporting event.
Non-Profit Community Theater-a non-profit resident theater or producing organization incorporated as a 501(C)(3) organization recognized by the Louisiana Secretary of State.
Office-Office of Entertainment Industry Development.
Originate-shall include, but not be limited to, state-certified musical or theatrical productions which are:
a. pre-Broadway engagement or remounts;
b. tour or resident production remounts;
b. resident or regional productions;
c. national touring companies producing their first public performance in Louisiana; or
d. concert tours producing their first public performance in Louisiana.
Payroll-all salary, wages, and other compensation, fringe benefits taxed, sourced or apportioned to Louisiana, and federal payroll taxes such as the employer's portion of FICA/FUTA and workers' compensation insurance costs to the extent purchased from a source within the state. Fringe Benefits including health care costs, 401K contributions, dental plans, and life insurance will be considered if these costs are paid by the employer and costs are apportioned to services performed in Louisiana on a certified project.
Production Expenditures-a contemporaneous exchange of cash or cash equivalent for goods or services related to development, production, or operating expenditures in this state for a state-certified production performed in Louisiana. (See §1694 for detailed illustrative examples of eligible and ineligible expenditures commonly associated with musical or theatrical production projects.)
Secretary-secretary of the Department of Economic Development, or his designee.
Series of Productions - a new musical or theatrical production with multiple Louisiana performances in a 12 month period. Simply rebranding or renaming a series, without substantive creative changes, will make a series ineligible for recertification in subsequent years.
State-Certified Musical or Theatrical Infrastructure Project -a capital infrastructure project in the state directly related to the production or performance of musical or theatrical productions as defined in this Section, and movable and immovable property and equipment related thereto, or any other facility which supports and is a necessary component of such facility, and any expenditures in the state related to the construction, repair, or renovation of such project, which are certified, verified, and approved as provided for in this Section.
State-Certified Musical or Theatrical Production-a concert, musical or theatrical production, or a series of productions occurring over the course of a 12-month period, and the recording or filming of such production, which originate, are developed, or have their initial public performance before a paying audience within Louisiana, or which have their United States debut within Louisiana, and the production expenditures, expenditures for the payroll of residents, transportation expenditures, and expenditures for employing college and vocational-technical students related to such production or productions, that are certified, verified, and approved as provided for in this Section. Non-qualifying projects include, but are not limited to non-touring music and cultural festivals, industry seminars, trade shows, and any production activity taking place outside the state of Louisiana
Student-a natural person enrolled in a Louisiana higher education facility, such as a college, university, or a vocational-technical college.
Transferee-an individual or entity that receives a transfer of base investment tax credits.
Transferor-an individual or entity that makes a transfer of base investment tax credits.
La. Admin. Code tit. 61, § I-1692